What is gold trading?
There are two main types of gold trading in the gold market, namely spot trading and futures trading. Spot gold mainly refers to gold nuggets (bricks), gold ingots, gold bars and gold coins. Most of the gold transactions newly mined by private or gold mining enterprises are physical transactions. The gold purchased by customers can be stored and transferred by themselves, or entrusted to a gold merchant for safekeeping. Spot transactions are generally delivered immediately after the transaction or completed within two days. Spot gold is traded at a special price, which is divided into two types in London gold market: pricing trading and quotation trading. The characteristic of pricing transaction is to provide customers with a single transaction price, that is, there is no bid-ask spread. According to the price of a single transaction, customers can buy and sell freely, and gold merchants only charge a small commission. Quoting transactions are divided into buying price and selling price. Pricing transactions are only valid for a specified period of time, ranging from one minute to one hour, depending on the supply and demand of market customers. The price of gold in other gold markets in the world is based on the pricing level of London market, and then look at the supply and demand situation in this market. Gold futures trading is not delivered immediately after trading, but both parties sign a contract, pay the deposit and then deliver on the scheduled date.
Types of gold trading market:
The gold trading market can be classified according to its nature, function, trading type and mode, trading control degree and delivery form.
(1) According to its nature and influence on the whole world gold trading, it can be divided into dominant market and regional market.
A. dominate the market. Refers to the market where price formation and trading volume changes play a leading role in other gold markets.
B. regional markets. Mainly refers to the limited scale of transactions, and most of them are concentrated in the local area, which has little impact on the whole world market.
(2) According to the different types and ways of trading, it can be divided into spot trading and futures trading.
The so-called spot transaction refers to a transaction method in which both parties complete the transaction and deliver it within two business days.
The so-called futures trading refers to a trading method in which both parties make delivery at a certain time in the future according to the signed contract.